Edd Helms Group Issues 10QSB for First Quarter Fiscal 2008
Edd Helms Group released their 10QSB to the SEC on October 22nd for the first quarter in fiscal 2008. For the three months ended August 31, 2007, Revenues in fiscal 2008 were $4,803,181 compared to $5,922,054 in fiscal 2007, a decrease of approximately 18.9% from those reported in 2007. Income from operations before taxes in fiscal 2008 were $7,353 compared to $385,769 in fiscal 2007. Condensed business segment revenues reported revenues and income before taxes as follows: Electric revenues in fiscal 2008 were $2,244,983 compared to $2,566,193 in 2006. Electrical income in fiscal 2008 was ($46,173) compared to $62,099 in 2007. HVAC revenues in fiscal 2008 were $2,087,169 compared to $2,593,604 in 2007. HVAC income in fiscal 2008 was $95,439 compared to $250,761 in 2007. There were no Datatelcom revenues in 2008 as that business unit is idle, compared to $762,257 in 2007. Datatelcom income was $0 compared to $72,909 in 2007. Prior to fiscal 2006 Datatelcom segmented revenues were reported under the Electric segment. Marine revenues in fiscal 2008 were $471,029 compared to 2007 when they were included in the HVAC segment revenues. Marine Income for fiscal 2008 was $21,927. Showroom revenues in 2008 were $0 and Showroom income for 2008 was ($65,938).
According to Dean Goodson, Chief Financial Officer, the decrease in revenue and income can be attributed to a slow down in the building services industry in South Florida over the past quarter, and the fact that the quarter ended August 31, 2007 was abnormally high. "We anticipate a slower than normal 2nd quarter and are taking actions to adjust overhead accordingly to maintain profitability." Selling, general, and administrative expenses decreased by 1% for the 3 months ending August 31, 2007 compared to the same period in the previous year. This decrease in SG&A expense is positive considering the investments we made in our sales forces, recent construction of our new service department, and relocation of our inventories and tools into a smaller consolidated warehouse. We believe these investments along with process improvements have allowed the opportunity to reduce our headcount, while maintaining the service level our customers expect. Considering these factors, the net income for the three months ending August 31, 2007 was consistent with expectations.